Crypto scams surge in August 2024 with $313m stolen

In August 2024, the cryptocurrency industry experienced a dramatic increase in losses due to scams, with over $313 million siphoned off by malicious actors, according to blockchain security firm PeckShield.

This marks a significant 18% rise in losses compared to July, when $266 million was lost to 16 different hacking incidents.

PeckShield’s latest report, shared on their X page, highlights that the majority of these losses stemmed from high-profile phishing attacks.

The firm’s detailed analysis reveals that out of the total losses, a staggering 93.5%—approximately $293.4 million—was attributed to two major phishing schemes.

The largest incident involved a crypto whale who lost 4,064 Bitcoin, valued at around $238 million, to a phishing attack on August 19.

The stolen funds were subsequently dispersed across multiple crypto platforms, including THORChain, KuCoin, and Railgun. Another significant phishing attack resulted in the theft of $55.4 million in DAI stablecoin.

In addition to phishing, unauthorized transfers also contributed to the monthly losses.

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Notable incidents include a $12 million unauthorized transfer from the Ronin Network, which was fortunately recovered by white hat hackers who identified and reported the vulnerability exploited in the attack. Other unauthorized transactions include a $5.1 million hack and Nexera’s $1.83 million exploit.

PeckShield’s report underscores the growing focus of hackers on crypto whales—large holders of cryptocurrency whose activities can significantly impact market prices. These high-profile targets are increasingly falling prey to sophisticated phishing and other scam tactics.

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The report also notes the prevalence of various types of crypto scams, with phishing attacks remaining the most common. Phishing involves tricking individuals into revealing their credentials through fake websites, a tactic that is also widely used in business email compromise (BEC) scams.

Other scam types include pig butchering schemes, where scammers build long-term relationships with victims before defrauding them, and rug pulls or exit scams, where fraudulent schemes are abruptly terminated, leaving investors with losses.

As the crypto industry grapples with these escalating threats, the need for enhanced security measures and vigilance remains critical.